Talent Search Firm in Trouble for Alleged COPPA Violations

The FTC has filed a complaint against online talent search firm Explore Talent for allegedly violating the Children's Online Privacy Protection Act (COPPA). The complaint states that Explore Talent would allow children under the age of 13 to create accounts without the proper parental consent. To create an account, the children were also asked to provide information about their body type and to upload a picture of themselves onto the website. The FTC's order imposes a $500,000 fine on Explore Talent, which could be suspended based on their inability to pay. Read the FTC's release about this issue here.

Iowa Bill Would Impose $40,000 Fine on Caller-ID Spoofers

Iowa State Senator Ken Rozenboom has introduced a bill that would impose a civil penalty of up to $40,000 upon businesses that are believed to be using caller-ID "spoofing" tactics. Caller-ID spoofing is when the caller uses technology to make a local or familiar number appear on a call recipient's caller-ID. Last year, the FCC proposed a $120 million fine against a company that allegedly used this tactic. Telemarketers should only display numbers that they actually own. Read a local news story about the Iowa bill here.  Learn about telemarketing rules and consider signing up for an online telemarketing compliance course.

Telemarketing is Number One Consumer Complaint in Wisconsin

The Wisconsin Department of Agriculture, Trade and Consumer Protection has announced that unwanted telemarketing calls were the number one consumer complaint that residents of the state had during 2017. This is also the case at the national level, and likely in most states. Telemarketing complaints totaled nearly four times as many as the next highest category. Regulatory enforcement at both the State and Federal levels is complaint driven. Telemarketing businesses should make reducing and resolving consumer complaints a priority. Read a local news story about the announcement here. Learn about state by state telemarketing compliance. For example, make sure you understand state telemarketing license and telemarketing bond requirements. Learn more about FCC telemarketing laws, cell phone telemarketing laws, and do-not-call regulations. Contact a TCPA lawyer if you would like help understanding telemarketing regulations.

FTC Obtains Court Order Against Alleged Business Coaching Scheme

At the request of the FTC, a federal court has halted operations of a business that allegedly misrepresented its business coaching program and took over $14 million from consumers. According to the FTC's complaint, "The defendants induced consumers to pay for a series of tiered memberships with increasing fees, falsely claiming that consumers would learn how to make substantial income with an online business. They promised consumers they would receive individualized coaching from successful marketers that would provide what they needed to build a successful business, but, in reality, these were merely salespeople selling higher membership levels in the defendants’ program." Read the FTC's press release here.